ASIA MARKETS: Tokyo Rebounds, Shrugs Off Dismal Tankan Result

By V. Phani Kumar

Asian markets bounced Monday, as automakers like Toyota Motor Corp. and Hyundai Motor Co. jumped to recoup losses from the previous session, after the Bush administration said Friday it would step in to prevent a failure of U.S. automakers.

Japan's Nikkei 225 Average, which slumped 5.6% Friday, soared 4% to 8,561.22, while the broader Topix index gained 3.4% to 840.78.

The jump came even after Bank of Japan's tankan survey showed business sentiment dropped sharply, with the headline diffusion index for large manufacturers deteriorating at its fastest pace since August 1974, falling 21 points to minus 24. The reading was the worst in nearly seven years.

Australia's S&P/ASX 200 rose 3.5% to 3,633 and South Korea's Kospi jumped 3.5% to 1,141.87, while New Zealand's NZX 50 index rose 0.8% to 2,697.17.

ASIA MARKETS: Tokyo Stocks Pace Gains, Ignoring Bad News, Data

By V. Phani Kumar

Japanese stocks soared Monday to lead Asian markets higher as investors brushed aside a survey showing business confidence plunged, on hopes for a U.S. interest-rate cut and after the Bush administration said Friday it would step in to prevent a failure of U.S. automakers.

The Nikkei 225 Average, which slumped 5.6% Friday, soared 4.8% to 8,627.45 in the afternoon, while the broader Topix index gained 3.7% to 843.44.

The advance ignored Bank of Japan's tankan survey, which showed business sentiment dropped sharply, with the headline diffusion index for large manufacturers deteriorating at its fastest pace since August 1974, falling 21 points to minus 24. The reading was the worst in nearly seven years.

Hong Kong's Hang Seng Index rose 3.5% to 15,271.19, also rebounding after losing 5.5% Friday, and shrugging off a report in the Financial Times that HSBC Holdings has a potential exposure of $1.5 billion to Bernard Madoff, a former chairman of Nasdaq, who was arrested last week and charged with securities fraud. An HSBC spokesman in Hong Kong declined to comment on the report.

Tokyo Stock Exchange: 130 years of success

The second largest stock exchange market in the world by market value, second only to the New York Stock Exchange, it outstripped the London Stock Exchange in its day. With the background of 130 years it represents a modern institution that helps the business of huge holding companies incorporating best global practices and native principles peculiar to the local mentality. Its motto runs: “To strive to create a sound market with a high level of reliability and convenience from the standpoint of investors and other market users, thereby contributing to the realization of a more prosperous society.”

BOND REPORT: Treasurys Gain On Dismal Jobless Data, 10-year Auction

By Deborah Levine

Treasury prices gained ground Thursday, pushing yields lower, following more gloomy data on U.S. employment, and after a successful government auction of 10-year bonds.

The Treasury sold nearly $16 billion of 10-year bonds at a high yield at 2.67% , the lowest-yield ever offered by the government in a 10-year auction, a silver lining of mounting debt to pay for bailouts of banks, mortgage-buying agencies, insurers and possibly, auto manufacturers.

The previously lowest-yield auction was in March, at 3.51%.

The bid to cover ratio stood at 2.44, an indication of firm demand.

MARKET SNAPSHOT: U.S. Stocks Trade Flat As Energy Gains Offset Car Worries

By Nick Godt

U.S. stocks rebounded from early weakness to flirt with positive territory on Thursday, with energy stocks rising as crude oil prices surged another 11% on a weak dollar and expectations of upcoming production cuts.

The energy sector jumped 4% as crude oil futures rose $5.12, or 11.6%, to $ 48.57 a barrel, extending a rally from the previous session.

The rest of the market, however, remained flat to negative amid ongoing concerns about a bailout for the U.S. auto industry. Late Wednesday, the U.S. House of Representatives approved a $14 billion federal loan package to the Big Three automakers in a 237-170 vote.

"The bill now has to go through the Senate where it is expected to face a tougher challenge," said Robert Kavcic, an analyst at BMO Capital Markets.

The Dow Jones Industrial Average (DJI) was up 20 points, or 0.2%, at 8,782, off a morning low of 8,617.

Among blue-chips, shares of Chevron Corp. (CVX) jumped 4% and those of Exxon Mobil Corp. (XOM) rose nearly 2%.

Weighing on the Dow, shares of General Motors Corp. (GM) slumped 6%, while away from the Dow, Ford Motor Co. (F) shares fell 4%.

Financial blue chips were also under pressure, with JP Morgan Chase (JPM) off 4.5%, Citigroup (C) down 5% and Bank of America (BAC) down 3.6%.

Also on the Dow, household products giant Procter & Gamble lowered its sales growth forecasts for the current quarter. The company, however, said it still expects to meet its previously earnings forecasts and its shares rose 0.6%.

The S&P 500 index (SPX) rose 1.9 point